As a newly married couple, you may be thinking about having children in the future. However, you may not be sure how to budget to maintain a comfortable lifestyle. Your budgeting should start soon, and consider factors for several years out once the baby is born. Before you start working on your budget, consider the tips below to help you know what you’re preparing for and how to get started.
1. Putting Money Away Now
If you haven’t already started a savings account as a married couple, it is time to start putting money away for kids. You will face costs immediately once you have the baby, and these costs don’t end until they are grown. It’s a good idea to put away at least 20% of each spouse’s income into the savings account so that it can grow. If you have the room for more, you can absolutely do 30 or 40% to catch up and build. Depending on how many children you have, you may need an even larger budget, so keep in mind that whatever you budget for one child, you should double or triple that for a second and third child.
2. Considering Surrogate or IVF Fees
Not everyone has the same conception experience, so you may find that while you want kids, you have additional obstacles to work through. If you aren’t able to physically carry a baby, then you may need to invest in a surrogate mother to carry your children for you. The cost of surrogacy is based on several factors, including whether the assistance of an egg donor is needed, your surrogate’s personal expenses during the pregnancy, how many children the surrogate is carrying, and the medical circumstances that happen during the pregnancy.
Some may not have an issue carrying the baby but need help getting pregnant, in these cases, you will need to pay for IVF or in-vitro fertilization treatments where the conception stage is overseen by a doctor. These aren’t covered by insurance and aren’t always a guarantee. They are, however, something you can budget for if your doctor has let you know that’s an option for you.
3. Choosing a School Tuition Account
School tuition is a big expense that parents have to consider in their budget, which goes for grade school, secondary, and then college education afterward. There has been a push in the last decade for more students to attend private schools at the K-12 level and later on. Private schools are not hard to find, especially since there are over 30,000 private schools in the US, according to CAPE
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With so much focus on education, many of these private schools are adopting the Montessori curriculum, which shows that students in their classes strive for public school students and other private schools with their own curriculum, according to published studies. Approximately 140 students were tested over three years at the start of the preschool and found that both the Montessori and non-Montessori kids began at age three with similar achievement scores. The 70 students who went to the Montessori schools advanced more rapidly on math and literacy tests over the remaining test period.
4. Eliminating Unnecessary Debt
Before you start having children and start your savings, it is a good idea to eliminate unwanted debt that can hurt your credit score and your finances. This type of bad debt includes credit card debts, personal loans, and any collection accounts you have outstanding that need to be paid. Good debt is your mortgage that you want to keep and your vehicles that you will need over time. Once the bad debt is eliminated, you can add that extra to your savings to prepare for your children.
Take advantage of these four tips and prepare your budget. If you know you want children, plan and lay out a budget to help you build your savings before that time and reduce the debt you need. Also, research the schools in the area to see if you will be taking advantage of the public school system or private options. That decision could shape how much or little you need to save before having your children.
